March 28, 2006

New York & Presbyt. Hosp. v Travelers Prop. Cas. Ins. Co. (2006 NY Slip Op 02344)

Headnote

The relevant facts in New York and Presbyterian Hospital v Travelers Property Casualty Insurance Company, include an action to recover no-fault medical payments, in which New York and Presbyterian Hospital, as the assignee of William Browne, and New York Hospital Medical Center of Queens, as assignee of Amy Kazane, were the plaintiffs. The main issue decided was whether the defendant's motion to vacate a judgment entered upon its failure to appear or answer the complaint, and for leave to serve a late answer, should be granted. The holding of the case was that the defendant was required to demonstrate both a reasonable excuse for the default and a meritorious defense, and the defendant made that showing. Therefore, the Supreme Court granted the defendant's motion to vacate the judgment and for leave to serve a late answer.

Reported in New York Official Reports at New York & Presbyt. Hosp. v Travelers Prop. Cas. Ins. Co. (2006 NY Slip Op 02344)

New York & Presbyt. Hosp. v Travelers Prop. Cas. Ins. Co.

2006 NY Slip Op 02344 [27 AD3d 708]

March 28, 2006

Appellate Division, Second Department

Published by New York State Law Reporting Bureau pursuant to Judiciary Law § 431.

As corrected through Wednesday, May 17, 2006

New York and Presbyterian Hospital, as Assignee of William Browne, et al., Appellants, et al., Plaintiff,
v
Travelers Property Casualty Insurance Company, Respondent.

—[*1]In an action to recover no-fault medical payments, the plaintiffs New York and Presbyterian Hospital, as assignee of William Browne, and New York Hospital Medical Center of Queens, as assignee of Amy Kazane, appeal from an order of the Supreme Court, Nassau County (Feinman, J.), dated July 15, 2005, which granted the defendant’s motion to vacate a judgment of the same court entered March 11, 2005, upon its failure to appear or answer the complaint, and for leave to serve a late answer.

Ordered that the order is affirmed, with costs.

To vacate its default, the defendant was required to demonstrate both a reasonable excuse for the default and a meritorious defense (see CPLR 5015 [a] [1]; Hospital for Joint Diseases v Dollar Rent A Car, 25 AD3d 534 [2006]; Hospital for Joint Diseases v ELRAC, Inc., 11 AD3d 432 [2004]). The defendant made that showing. Accordingly, the Supreme Court providently exercised its discretion in granting the defendant’s motion to vacate the judgment entered upon its failure to appear or answer the complaint, and for leave to interpose a late answer. Florio, J.P., Santucci, Mastro, Rivera and Covello, JJ., concur.